Confessions Of A Market Maker Episode #124: Dave Mabe CTO Officer at Trade Ideas on Backtesting, creating a process & AI trading
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Jun 27, 2024 Chief technology officer at Trade Ideas & consistent profitable systematic independent trader for 17 years, Dave Mabe, discusses transitioning from manual to automated trading, the significance of backtesting, and the impact of unavailable borrows on trading performance. The episode explores the development of Holly AI, trading psychology, and offers a free trial for the micro futures trading room.
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Prefer Frequent Trades And Daily Reviews
- Favor strategies with many trades so you can remove the worst performers and improve average profit per trade.
- Maintain a daily review process to stay tuned to market behavior and find tweak opportunities.
Design Strategies For Longevity
- Build strategies with long-term robustness in mind so they require minimal tweaking over years.
- Designing for robustness reduces maintenance and preserves the original edge.
Normalize Filters With Relative Metrics
- Use normalized filters like relative volume and ATR to make strategy rules robust across instruments.
- Avoid raw measures; compare metrics to normal behavior for more durable signals.